During the Building Block 23 conference in Tel Aviv, Joseph Lubin was asked if Ethereum's transition to the Proof-of-Stake algorithm could result in regulators recognizing the second cryptocurrency as a security.
“I think that would be tantamount to calling Uber illegal.. There would be a huge reaction not only from the crypto community, but also from certain politicians and even regulators,” Lyubin replied.
Ethereum co-founder and ConsenSys CEO reveals he has been in discussions with the SEC and CFTC for many years. And, according to him, about five years ago, regulators were finally able to understand what “these tokens of yours” are:
“Back then, they thought that any cryptocurrency and token fit the definition of a security.. I think we helped them understand the different types of tokens much better and how many of them are not securities.. Then they retreated, but now Gary Gensler and the team again think that almost everything is a security.
Lubin himself emphasizes that Ethereum remains a “significantly decentralized” cryptocurrency and has many uses that are not suitable for securities.
“ETH does not have a centralized set of promoters or developers who deliberately try to increase the value of the coin and enrich investors. The US court system, I think, will support the arguments that this is not a security,” Lubin said.
Earlier, Coinbase CEO Brian Armstrong said that US regulators may ban retail investors from staking, as it looks like a securities offering.. He believes that this will be a strong blow to the cryptocurrency industry.